HOT and NOT Across Florida

Miami, Palm Beach/ Southeast Florida

Ryder Integrated Logistics facility at Beacon Lakes, Miami [Photo: Richard Given, CRBE]

On the rebound: South Florida, hit hard by overbuilding, is seeing signs of positive momentum in its industrial real estate sectors. Logistics companies, food manufacturers and distributors are looking for space in south Florida. International trade and the Port of Miami have helped the Miami-Dade County industrial market turn the corner, according to CB Richard Ellis. Broward and Palm Beach counties, however, are still searching for a driver that will lead them out of the downturn. Because of the relatively low vacancy in this sector, sales of industrial properties have increased, with buyers clamoring for quality industrial offerings.

Still struggling: As in most areas of Florida, the office sector remains weak. Vacancy rates are higher than pre-recession levels, and new projects in some submarkets are only adding to the oversupply. But tenant confidence is increasing, and many are showing a willingness to commit to longer-term leases. Phil Procacci, of Procacci Development, says he has begun the permitting process for a new hurricane-resistant, 85,000-sq.-ft. office building in west Miami-Dade and will begin construction once he has a commitment from a large tenant. His existing office building in the area is 99% leased. "There are tenants who are moving to take advantage of competitive rents," Procacci says.

Mobis Parts America (subsidiary of Hyundai) facility, Miami [Photo: Richard Given, CBRE]

Vacancy Rates (Mid-year 2011)